MODEL BILLS

Solar Power Purchase Agreement Act

Summary: The Solar Power Purchase Agreement Act prevents electric utility regulatory law or electric power companies from preventing landowners from using third parties to install and lease back on-site solar energy.

NOTE: This model assumes the state already has an effective “net metering” law. If not, see this Model Net Metering Act.

SECTION 1. SHORT TITLE

This Act shall be called the “Solar Power Purchase Agreement Act.”

SECTION 2. PURPOSE

This law is enacted to encourage property owners to use on-site solar energy.

SECTION 3. SOLAR POWER PURCHASE AGREEMENTS

After section XXX, the following new section XXX shall be inserted:

(A) Definitions – In this Act:

1. “Electric service provider” means any electric utility, electric membership corporation, or municipal electric utility that is engaged in the business of distributing electricity to retail electric customers in this state.

2. “Electric supplier” means any electric light and power company subject to regulation by the commission, any electric membership corporation furnishing retail service in this state, and any municipality which furnishes retail service in this state.

3. “Electric utility” includes an electric service provider and an electric supplier.

4. “Retail electric customer” means a person who purchases electric service from an electric utility for such person’s use and not for the purpose of resale.

5. “Solar financing agent” means an individual or entity whose primary business is the installation or financing of solar technology on property owned or occupied by a retail electric customer primarily for the on-site generation of electric energy.

(B) SOLAR TECHNOLOGY

1. When a retail electric customer installs solar technology for the generation of electric energy for use primarily on property owned or occupied by such customer, such solar technology and its installation may be financed by the retail electric customer through a solar financing agent utilizing a loan, lease, power purchase agreement, or any other form of financing agreement.

2. No electric utility shall prevent or otherwise interfere with the installation or financing of solar technology by a retail electric customer through a solar financing agent.

3. A solar financing agent shall not be considered an electric utility for any purpose under this title.

4. Provisions in a loan, lease, power purchase agreement, or other form of financing

agreement for payments to a solar financing agent by a retail electric customer based on the amount of electricity furnished to such customer shall not be considered the provision of electric service to the public, retail electric service, or the retail supply of electricity by the solar financing agent, and neither such retail electric customer nor such solar financing agent shall be considered an electric supplier by virtue of such provisions.